MADRAS FABRICATORS Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS is an appeal against the order of Collector of Central Excise (Appeals), Madras. Brief facts of the case are that the appellants filed a declaration under Rule 57A for the purpose of claiming MODVAT credit in respect of lacquered sheets received by them for the manufacture of metal containers falling under Chapter 83 of the Central Excise Tariff for the purpose of availing MODVAT credit from 1-3-1986. The appellants in fact were buying duty paid tin sheets under Gate Passes issued by the manufacturer and they were sending the same for lacquering without bringing them into their own factory and the lacquered sheets were received by them in their factory.

(2.) From the records and averments made before us it is noticed that so far as duty payment on the tin sheets is concerned the same was not paid nor there is any plea that the same was chargeable. The appellants, however, took credit of duty amounting to Rs. 2,28, 521.64 till January, 1987 in RG. 23A Part II on the basis of the Gate Passes and Bills received by them in respect of the plain sheets which were lacquered after purchase. The appellants were charged for having taken credit in RG. 23A register for non-declared plain tin sheets and for having sent the plain tin sheets after purchase without following the procedure and for having wrongly taken the credit under Rule 57F (2) of Rs, 2,28,521.64 till January, 1987 in contravention of Rule 57G. The appellants were also charged for having delayed the filing of Rs. 23A extracts with RT. 12 returns. The appellants pleaded before the lower authorities that they had taken the credit on the plain sheets and they took the credit as and when they received the Gate Passes and this resulted in, according to them, some delay in filing the extracts among other reasons. The lower authorities, we find, have held that the appellants had taken credit of duty on items not declared in violation of the provisions of law and have not followed the procedure set out under Rule 57F (2) for getting the plain sheets lacquered on job work basis and the benefit of MODVAT was negatived to them.

(3.) WE heard the learned D.R., Shri K.M. Vadivelu, who adopted the reasoning of the Collector in the impugned order.